Asia Daily PP PE Report 15 Apr 2016

In China, futures prices on Dalian Commodity Exchange completed a volatile trading week on a mixed sentiment. Contract number 1605 for PP inched down CNY9/t ($1/t) to reach CNY6848/t ($903/t without VAT), LLDPE futures in contrast added CNY35/t ($5/t) to reach CNY8380/t ($1105/t without VAT).

Domestic producers adjusted PP and PE prices list down CNY50-100/t ($8-15/t) from yesterday and traders adopted more aggressive move by selling below local price list to combat weakening buying interest. A converter in Fujian received local homo-PP offer at CNY7000/t ($923/t excluding VAT) said, “We expect local inventories to rise after the Labor Day which might exert further downward pressure on the local prices; therefore we plan to hold the wait and see stance for now. Demand for our end product is regular and we are digesting on hand inventory at the moment.”

There are very limited numbers of new offers observed in the import market today as sellers are monitoring the overall market movement before deciding on the next move. At the meantime, several traders have decided to lower their offers to test buyer’s respond. A Shanghai based trader commented, “Most offers at the upper range of the overall prices are facing tough time attracting customers. We have reduced our prices slightly and open to negotiation, yet our regular buyers are not showing much interest. It a just a week before the ChinaPlast exhibition and with the current development in the energy market, we feel very uncertain bout the outlook next week.”

In Southeast Asia, market sentiment is rather quiet on the last trading day of the week with couple of major markets within the region entered their respective holidays. Despite trading activities are loosing momentums; very few sellers adjusted their prices to entice sales as they hope to see a clearer market direction after the long awaited meeting between major oil producers to discuss about production freeze. A woven bag converter received offers for Middle East homo-PP at $1080/t CIF Vietnam, LC AS term said, “We have suspended our purchasing activities in the absence of confidence in the near term outlook. Demand for our end product in domestic market is very weak due to the recent draught; therefore we only do export these days. We are waiting to see the development in the energy market in order to gauge the likelihood of the market direction before making additional purchases.”

In Indonesia, traders have reduced their local homo-PP prices by $20/t compared to yesterday due to lack of demand with a source said, “We are not having quantity at the moment, yet we still need to bring our offers down since buyers are resisting the previous price levels. Besides, we are willing to give additional $20/t discount for larger purchases with cash payment. We think the market has reached the peak and might not be able to increase further in the near term.”

The PE market has not seen any official offers besides a number of re-export HDPE film cargoes reported. However, most players are not every optimistic about the outlook in the coming month with expectation that ethylene monomers might weaken in line with the restart of several cracker in the region. A Philippines trader said, “We think HDPE film market increase these days with the spillover support of LLDPE film market. Supply for this grade is rather sufficient and in term prices, we think HDPE film might be weaker in the coming days.”   

For detail Daily Prices in China and Southeast Asia market, kindly visit our website at www.commoplast.com. Please contact our representatives at commoplastinfo@gmail.com for log in assistance.